Great American Energy Inc (OTC:SRBL) Are at it Again

The first promotional wave for Great American Energy Inc (OTC:SRBL) hit the inboxes back at the beginning of last week. That certainly had an effect on the performance of the stock and within a couple of days it had gained around 25%, which must have made the people who paid for the pump extremely happy. Then, out of nowhere, on February 21, the emails stopped which also had an effect on the way the stock’s behavior – it crashed down losing 21% in just one trading session. Now, it would seem, the pumpers are trying to hype SRBL once again.

This time, it’s SmallCap Network who are touting SRBL and their email has a sort of sinister air to it, that you sense from only the top horror films. It says how China is bracing themselves to extinguish the American economy, take away the workplaces and generally dominate the world by stopping the export of rare earth elements. If the email is anything to go by, however, we shouldn’t be scared at all since SRBL are here and they are ready to start mining very soon.

Not to be outdone, SRBL themselves are also trying to help with the excitement and they published a press-release stating that they are going to start an exploration program in March. We would say that this is a step forward and, if it’s true, SRBL deserve a pat on the back, but you should be aware of the difference between an exploration program and actual mining. As the press-release itself states, they are going to engage in sampling the soil and this will give them a more accurate estimation of how much money can they get out of the ground. The sampling process itself will probably cost quite a lot. Then, they will need to perform a lot of calculation to see if the whole thing will be worth it. Only if they deem it profitable they can give the diggers the go-ahead and wait for the money to start flowing.

That’s quite a lot of steps before any figures start appearing under the Revenues section in their financial statement, and it wouldn’t have been so bad if we were sure that SRBL have the money to cover for all the expenses but, as we mentioned in our previous articles on them, they don’t.

Since we mentioned woeful financials, we should also point out that SRBL‘s CEO, Mr. Felipe Pimienta once held several managing positions at a company called West Canyon Energy Corp (PINK:WCYN). As you’d expect, their latest report inspires no confidence at all and they were also promoted back in November by a number of paid pumpers. This resulted in a sharp peak but unfortunately, this didn’t last long and the price tumbled back to earth where it has remained ever since. This looks remarkably familiar to what happened to SRBL last week.

And since we picked up the subject of failed promotions, we should also mention that SmallCap Network, the people who sent the latest email on SRBL, have had lots of them in the past. One of their more recent one is Echo Automotive fka Canterbury Res Inc (OTC:ECAU). Their pump started on January 22 and the chart on the right shows exactly how badly ECAU‘s shares have crashed since then.